07/08/2017 - Dollar Rebounds After Strong Jobs Figure

USD

The dollar was had its biggest one-day gain against a basket of major currencies so far this year after a strong U.S. July payrolls report and comments from National Economic Council director Gary Cohn about lowering the U.S. corporate tax rate. June's employment gain was revised up to 231,000 from the previously reported 222,000, while average hourly earnings increased 0.3 percent to match expectations after rising 0.2 percent in June. Labor Department said non-farm payrolls increased by 209,000.

The dollar has suffered in recent months, largely due to increased doubts that the Federal Reserve would raise interest rates again this year and obstacles to U.S. President Donald Trump's agenda, which is seen by investors as pro-growth. The outlook for a December rate hike remained uncertain, with federal funds futures last implying traders saw roughly a 50 percent chance of a December increase on Friday.

GBP

For the first time, a figure has surfaced of what Prime Minister Theresa May is willing to pay to settle the so-called divorce bill, as details also emerge of the kind of transitional arrangements the government will seek ahead of a third round of talks with European Union negotiators later this month.

The Sunday Telegraph cited three unconfirmed government officials as saying Britain would put 36 billion pounds on the table in a bid to push the discussion toward a future trade deal. Even though Brexit Secretary David Davis told the Sunday Times that the report was “news to me,” the story details a degree of behind-the-scenes bartering, with 40 billion euros seen as a compromise between what the EU wants and the U.K.’s starting position.